{"id":28556,"date":"2021-04-05T12:22:18","date_gmt":"2021-04-05T06:52:18","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=28556"},"modified":"2024-07-03T18:08:46","modified_gmt":"2024-07-03T12:38:46","slug":"impact-of-bilateral-investment-treaties-on-the-import-export-business","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/impact-of-bilateral-investment-treaties-on-the-import-export-business\/","title":{"rendered":"Impact of Bilateral Investment Treaties on the Import &#038; Export Business"},"content":{"rendered":"\n<p class=\"has-drop-cap\">In order to tackle the\npandemic, most nations are undertaking prompt measures to avert economic\nrecession. There have been integral measures such as prompt credit, export\nschemes, concessional reforms. Additionally, there are external measures such\nas bilateral investment that can improve trade &amp; help firms prosper.<\/p>\n\n\n\n<p>Currently, India &amp;\nthe European Union are collectively working on concluding new bilateral\ninvestment treaties. Bilateral Investment Treaty agreements are often envisaged\nas historical or academic interests. But, for most nations, these agreements\nhelp investors in understanding legal mechanisms &amp; dispute resolution.<\/p>\n\n\n\n<p>In this write-up, we analyze the impact of bilateral investment treaties on cross-border trading such as <a href=\"https:\/\/corpbiz.io\/iec-registration\"><strong>import and export<\/strong><\/a>.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/impact-of-bilateral-investment-treaties-on-the-import-export-business\/#Overview_of_Bilateral_Investment_Treaties_in_India\" >Overview of Bilateral Investment Treaties in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/impact-of-bilateral-investment-treaties-on-the-import-export-business\/#India-EU_BIT_Creating_Growth_Opportunities_for_Importers_Exporters\" >India-EU BIT: Creating Growth Opportunities for Importers &amp;\nExporters&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/impact-of-bilateral-investment-treaties-on-the-import-export-business\/#Intellectual_Property_Rights_Protection_under_Bilateral_Investment_Treaties\" >Intellectual Property Rights Protection under Bilateral\nInvestment Treaties<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/impact-of-bilateral-investment-treaties-on-the-import-export-business\/#How_Does_Bilateral_Investment_Treaties_Impact_Businesses_in_India\" >How Does Bilateral Investment Treaties Impact Businesses\nin India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/impact-of-bilateral-investment-treaties-on-the-import-export-business\/#Does_BIT_Encompass_Services_Professionals\" >Does BIT Encompass Services &amp; Professionals?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/impact-of-bilateral-investment-treaties-on-the-import-export-business\/#Ease_of_Doing_Business_in_India_%E2%80%93_Cross_Border_Trading\" >Ease of Doing Business in India \u2013 Cross Border\nTrading&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/impact-of-bilateral-investment-treaties-on-the-import-export-business\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Overview_of_Bilateral_Investment_Treaties_in_India\"><\/span>Overview of Bilateral Investment Treaties in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Bilateral investment\ntreaties refer to treaties between nations intended to protect the investment\nmade by both nations&#8217; investors. These treaties encompass various conditions\nsuch as:-<\/p>\n\n\n\n<ul>\n<li>Giving\nfair treatment to overseas investors and investment<\/li>\n\n\n\n<li>Permitting\nrepatriation of profits \u2013 this implies sending off money to the investor&#8217;s country.&nbsp;<\/li>\n\n\n\n<li>Giving\nlegal measures such as dispute resolution, regulatory measures, and\ncompensation.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p><strong>Note:- <\/strong>The distinctive feature of most BITs is they permit for an optional dispute resolution mechanism, whereby an investor whose right has been contravened could have recourse to international arbitration, often under the backing of ICSID (International Centre for Settlement of Investment Disputes), instead of suing the host State in its courts. This process is known as investor-state dispute settlement (ISDS).<\/p>\n\n\n\n<p>The first BIT was signed between Pakistan and <em><strong>Germany<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Germany\"><em><strong>[1]<\/strong><\/em><\/a><\/sup> on November 25, 1959. At present, there are more than 2500+ BITs is in action, involving most nations in the world. In the past few years, the no. of BITs and preferential trade agreements, in particular, has been raised at a rapid pace; practically every nation is a member of at least one. Influential capital-exporting states generally negotiate such treaties based on &#8220;model&#8221; texts (such as the Indian or U.S. model BIT). Environmental norms have also become an imperative of these types of agreements.&nbsp;<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/iec-code-for-business-overseas-know-iec-benefits\/\">Take \u2013 Off Your Business to International Market with Import and Export Code (IEC); Know IEC Code\u2019s Benefits<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"India-EU_BIT_Creating_Growth_Opportunities_for_Importers_Exporters\"><\/span>India-EU BIT: Creating Growth Opportunities for Importers &amp;\nExporters&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If concluded correctly, a bilateral investment treaty between India and the EU can allow Indian exporters and the importer to access string of benefits that ensures growth. The following are the potential benefits of the treaty:-<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" width=\"1024\" height=\"478\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/04\/Creating-Growth-Opportunities-for-Importers-Exporters-1024x478.png\" alt=\"Creating Growth Opportunities for Importers &amp; Exporters \" class=\"wp-image-28591\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/04\/Creating-Growth-Opportunities-for-Importers-Exporters-1024x478.png 1024w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/04\/Creating-Growth-Opportunities-for-Importers-Exporters-300x140.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/04\/Creating-Growth-Opportunities-for-Importers-Exporters-768x358.png 768w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/04\/Creating-Growth-Opportunities-for-Importers-Exporters.png 1080w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n<h3 class=\"wp-block-heading\">Extended Market Access<\/h3>\n\n\n\n<p>The bilateral investment\ntreaties ensure improved market access to European nations with significantly\nreduced tariffs and customs duty.&nbsp; <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Reduced Taxes on Imports<\/h3>\n\n\n\n<p>Taxation,\nby far, is still conceived as the controversial aspect of the BITs. Since every\nnation has its own taxation regime and policies, it harder for investors to\ndraw out any conclusion in this regard. Also, the threats of double taxation\noften discourage investors from pouring in more capital. Fortunately, the\ninclusion of the \u201cfair and equitable treatment\u201d standard in BITs can protect\nthe investors from stringent tax deductions.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Seamless Dispute Resolution<\/h3>\n\n\n\n<p>Most BITs are\nunderpinned by international arbitration as the long-stop of dispute\nresolution. International Centre for Settlement of Investment Disputes (ICSID),\nInternational Chamber of Commerce (ICC), and the United Nations Commission on\nInternational Trade Law (UNCITRAL) are the common routes for investment treaty\narbitration.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Free Capital Movement<\/h3>\n\n\n\n<p>Less stringent\ninvestment norms and free capital movement will allow the Indian investors to\nmake larger investment. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Level Playing Field <\/h3>\n\n\n\n<p>In\ncommerce, a Level Playing field denotes a fair practice of trade. A level\nPlaying field will ensure that no investors will be treated prejudicially, and\ntrade will be executed by the rules mentioned under the agreement.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Solidifying Trade relations<\/h3>\n\n\n\n<p>Since the European Union\nis a 28-country bloc, a BIT with the entire EU region could improve trading\nrelations.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Fostering Tech Collaboration and Employments<\/h3>\n\n\n\n<p>European investment in\nIndian firm can garner growth opportunities, improve employment, and create\nspace for technological collaboration,&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Intellectual_Property_Rights_Protection_under_Bilateral_Investment_Treaties\"><\/span>Intellectual Property Rights Protection under Bilateral\nInvestment Treaties<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The term <strong><em>&#8216;investment&#8217;<\/em><\/strong>\nin bilateral investment treaties includes IPRs such as (copyrights, trademarks,\nindustrial designs, and patents), technical processes, know-how, and goodwill.\nThis grants equivalent Intellectual Property Rights in an overseas nation. But,\nthe exact nature of exclusions and protection are determined in the actual\ntreaty agreed between the countries.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Does_Bilateral_Investment_Treaties_Impact_Businesses_in_India\"><\/span>How Does Bilateral Investment Treaties Impact Businesses\nin India?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li>Minimized\nshipping time, expenses, and process involved. It had been witnessed that\nmultiple logistic requirements at shipping yards, airports, etc that involve\nduty payment &amp; other procedures resulted in unnecessary delay. The\nbilateral investment treaty can help Indian exporters and importers to avert\nsuch lags.<\/li>\n\n\n\n<li>Gems,\napparel, jewelry, &amp; textiles from India are already enjoying a wider\nmarketplace abroad. Though a BIT, there could be an improvement in global\ndemand for Indian goods and handicrafts.&nbsp;<\/li>\n\n\n\n<li>The\nexport level of a nation is proportional to its growth rate, and it is true in\nIndia&#8217;s case. Improved exports often translate into massive growth owing to\nprofit, technology, and foreign exchange<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Does_BIT_Encompass_Services_Professionals\"><\/span>Does BIT Encompass Services &amp; Professionals?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Seamless work and study\nvisa norms enclosed in a treaty make the exchange of professionals easier. But,\nin most BITs involving India, services professionals have yet to gain any\nrelaxation in this context. Several service sectors in India, such as legal,\naccounting, and banking services, are heavily regulated. However, the pandemic\nhas increased cross-border transactions in services, which might be included in\nfuture, BITs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Ease_of_Doing_Business_in_India_%E2%80%93_Cross_Border_Trading\"><\/span>Ease of Doing Business in India \u2013 Cross Border\nTrading&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In an astonishing\nprogress&#8217;s journey, amidst an economic downturn in past years, India has\nwitnessed a considerable leap of 14th places to finish 62 as far as ease of\ndoing business ranking is concerned.&nbsp;A positive record registered in\nseveral regions of core evaluation, such as cross-border trading.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A BIT is an imperative\ntool for fostering the nation&#8217;s growth, making India more competitive globally,\nand creating a more robust economy. Bilateral investment treaties in maturing\nsectors like artificial intelligence, food processing, big data, renewable\nenergy, aeronautics, and tourism can play a crucial role in encouraging import\n&amp; export businesses in India. <\/p>\n\n\n\n<p>For most nations, the BIT agreement acts as the only legal framework for conducting a bilateral investment. Besides, bilateral investment treaties&nbsp;provide better protection to the under-developed countries which have no other means to safeguards the investments against possible mistreatments.&nbsp;<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/how-to-get-iec-code-in-india\/\">How to obtain IEC Code in India<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In order to tackle the pandemic, most nations are undertaking prompt measures to avert economic recession. There have been integral measures such as prompt credit, export schemes, concessional reforms. Additionally, there are external measures such as bilateral investment that can improve trade &amp; help firms prosper. Currently, India &amp; the European Union are collectively working [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":28588,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[165],"tags":[1646],"acf":{"service_id":"16"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":4139,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/28556"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=28556"}],"version-history":[{"count":16,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/28556\/revisions"}],"predecessor-version":[{"id":65197,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/28556\/revisions\/65197"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/28588"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=28556"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=28556"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=28556"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}